If a board makes a decision, it must ensure that the decision is supported by evidence and is in line with the goals of the company in the long haul. That means gathering information from a variety of sources, including survey results, industry reports, competitor analysis and other data points that support the decision. It also involves weighing different alternatives against each other and determining which option is most likely to achieve the desired results.
Board members must consider the alignment of a proposed course with the vision and mission of the business, and also any regulatory or legal requirements. Additionally, Board members should be aware of any risk associated with the decision and ensure the board’s risk appetite is considered when making the decision.
Boards can also benefit from techniques that are designed to prevent groupthink. These include brainstorming, Six Thinking Hats (a method of avoiding groupthink), Disney Planning Method and Delphi Technique. It’s helpful to assign informal roles to specific Board members, like “devil’s advocate” and “devil’s advocate” to challenge other members for their ideas and assist in generating many solutions.
Boards can also decide on how and when to inform members about forthcoming votes. This allows them to spend the time needed to analyze and discuss the information prior voting, as well as enables them to ask questions and consider alternative ideas. This method helps to reduce the level of fatigue experienced by board members. I have witnessed situations where boards were given urgent information before they were required to vote, which could cause disruption and delay in the decision-making process.